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Centralization Essay

Response #1 What does it mean for a business to relocate? Does it mean that businesses use relocation opportunities to expand their market coverage and to pursue the principles of economic and organizational optimization? In his article, Janowitz (2007) suggests, that relocation can be equally positive and harmful to businesses.

I completely agree to the fact that before relocating, businesses should consider all available options and must guarantee that relocation does not harm the quality and overall effectiveness of the major business operations. However, I do not fully agree to the statement that relocation requires considering only a set of factors that characterize the chosen facility site. What seems more important is whether businesses can successfully and continuously perform during relocation.

Janowitz (2007) is correct in that relocation is a costly and potentially dangerous procedure, but it is business continuity that should be included into the set of crucial aspects responsible for the success of all relocation attempts.

Response #2 Centralization implies the need for businesses and production facilities to be concentrated in one location, and it is very probable that when decentralized, commanders will find it more difficult to effectively manage multiple units.

Delisi (2009) suggests that centralization can not only enhance the quality of all management operations, but can give commanders an opportunity to get the training they need, while keeping equipment up-to-date without moving from site to site. Unfortunately, a big deal of information exists with regard to the drawbacks of centralization; and that most companies prefer to remain decentralized suggests that decentralization is probably the most optimal business choice.

Unfortunately, centralization deprives businesses of organizational flexibility. Centralized decisions do not always fit into different organizational cultures, to which specific business units adhere. Finally, centralization does not provide business units and facilities with a chance to quickly respond to the changing environmental and market conditions; and although centralization may sometimes be beneficial, in the world of flexibility and innovation it remains the measure of last resort.


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